First Block Capital Inc., a blockchain investment company based in Canada, has announced that its flagship product, the FBC Bitcoin Trust, has acquired mutual fund trust status, which allows unit holders to deposit their units into self-directed accounts such as on a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA).
Canada’s First Bitcoin Investment Fund On NEO Connect
The FBC Bitcoin Trust is the first investment product of its kind in Canada and the country’s only regulated Bitcoin fund. The fund was originally eligible for accredited investors only.
The FBC Bitcoin Trust is now also open for purchase to accredited investors on NEO Connect, with the ticker FBCBT. The move is set on creating easier access for investment advisors to the trust.
NEO Connect is a retail asset management company serving investment product manufacturers, advisors and investors. It enables investment advisors to purchase and redeem the FBC Bitcoin Trust as a representative of their accredited investor clients. The service acts similarly to the way investment advisors buy and sell exchange-traded funds (ETFs).
Sean Clark, the Co-Founder and CEO of First Block explained that the company is dedicated to providing investors with more investment options that are blockchain and crypto-based.
The CEO said:
“Since inception, First Block Capital has been committed to providing investors with regulated, titled and auditable exposure to investment vehicles based on blockchain and cryptocurrency. Our team is extremely proud to maintain our market leading position and will continue to execute our vision of creating a fleet of investible products dedicated to the space.”
Bitcoin Exposure For Qualified Investors
First Block’s FBC Bitcoin Trust grants qualified investors the exposure to Bitcoin without the requisite of acquiring, storing or managing the underlying bitcoins.
Since the trust units have exceeded 150 unit holders within one year of their launching, they are classified as a qualified investment for a mutual fund trust under the Tax Act.
As the first and only OSC and BCSC-approved product of its kind in Canada, FBC Bitcoin Trust offers holders the exclusive opportunity to hold Bitcoin investments in TFSA and RRSP accounts.
Marc van der Chijs, the Co-Founder and Chief Investment Officer of First Block views the FBC Bitcoin Trust as a vehicle to drive Canada as a world leader in blockchain and cryptocurrency investments.
The CIO stated:
“With this accomplishment, we continue to push Canada forward as a world leader in regulated blockchain and cryptocurrency investment vehicles. Our goal is to make investments in the digital currency asset class more accessible and we are one step closer to achieving this goal by allowing unit holders to place units in government sponsored tax efficient vehicles, and by providing daily liquidity through NEO Connect, a fund distribution platform with a rapidly growing dealer network.”
First Block envisions that the majority of FBC Bitcoin Trust investors will move units in the first month. All transfers will be handled through registered broker dealer firms that First Block has worked closely with in preparation of the fund’s launch.
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